ILO Social Security Conventions
C.no.102 - Social Security Minimum Standards
This convention sets basic rules to make sure people have support when they need it, like during sickness, unemployment, or old age. It includes benefits for healthcare, family support, and emergencies.
C.no.121 - Employment Injury Benefits
This rule gives protection to workers who get hurt or sick because of their job. It makes sure they receive medical care and financial help while they need to recover.
C.no.183 - Maternity Protection
This convention focuses on supporting women during pregnancy and after childbirth. It provides maternity leave, medical care, and job protection so that women can take time off without risking their job.
C.no.202 - Social Protection Floor
This rule says that everyone has the right to basic social security. It sets a "floor," meaning a minimum level of income and support for all people, to prevent poverty.
C.no.67 - Income Security
This convention is about ensuring workers have a stable income, especially when they're in difficult situations, like losing a job or facing health issues.
C.no.130 - Medical Care and Sickness Benefits
This convention ensures that workers can get medical help and financial support if they fall sick, so they don’t struggle with money when they need treatment.
These conventions are like promises by countries to make sure workers are safe, healthy, and financially protected. They cover important areas of social security, such as health, income, and support during difficult times, helping workers and their families live safer and more stable lives.
Concept of Social Security and Labour Welfare in India
Protect Workers' Health and Safety
This includes healthcare, support during sickness, and safe working conditions to ensure that workers can work in a healthy and secure environment.
Provide Financial Help
Workers get financial support during times they can’t work, such as after an injury, during maternity leave, or in old age, ensuring they do not suffer financially during difficult times.
Ensure Fair Wages and Benefits
This aspect ensures that workers receive minimum wages and other benefits, allowing them to live a decent and dignified life with fair compensation.
Support Family Needs
Social security also extends support to workers' families, ensuring their well-being and financial security even if the worker cannot earn for a period of time.
The goal of social security and labour welfare in India is to provide a secure and fair working environment where workers and their families feel safe, valued, and supported.
Constitutional Dimensions – DPSP (Directive Principles of State Policy)
Article 38
This article directs the government to ensure a social order that promotes the welfare of all people, aiming for a fair and just society.
Article 39
This article emphasizes:
- Equal right to earn a living for both men and women.
- Equal pay for equal work, regardless of gender.
- Protecting the health and strength of workers and children, so they aren’t forced into unsuitable work.
Article 39A
This article ensures that everyone has access to equal justice and free legal aid, especially for those who can’t afford it.
Article 41
This article guarantees the right to work, education, and public assistance for people who need it, like during unemployment, old age, or sickness.
Article 42
This article focuses on just and humane conditions of work and ensures maternity relief for women.
Article 43A
This article promotes the participation of workers in the management of industries, allowing them to have a voice in decision-making.
These articles form the foundation for laws and policies that aim to protect workers' rights, provide fair conditions, and improve the overall welfare of society.
Concept of Wages
Minimum Wage
This is the lowest wage that must be paid to workers by law. It’s set by the government to help workers meet their basic needs like food, clothing, and shelter.
Fair Wage
A fair wage is higher than the minimum wage. It considers the industry’s ability to pay and what workers need to live reasonably well. It’s about fairness but may not cover all living costs.
Living Wage
This is a wage level that lets workers afford a decent standard of living, covering food, housing, healthcare, education, and other essentials. It’s often higher than both minimum and fair wages.
National Minimum Wage
This is a base wage set by the central government that applies across the entire country. It ensures that all workers in the nation receive at least a certain level of pay, no matter where they work.
Minimum Wages Act, 1948
Objectives
The main goal of the Minimum Wages Act is to prevent employers from paying extremely low wages that don’t meet basic needs. It aims to protect workers by setting a minimum wage, ensuring they can afford essentials like food, shelter, and clothing.
Constitutional Validity
The Act aligns with India’s Constitution, which encourages fair treatment and welfare for workers. It’s based on the Directive Principles of State Policy (DPSP), which promote equal pay and good working conditions. The Act is legally valid and is supported by the Constitution's goal to improve workers' lives.
Procedure for Fixing and Revising Minimum Wages
The government decides the minimum wage by reviewing factors like the cost of living, type of work, and region. This process is revisited periodically (at least every five years) to ensure the wages stay relevant and fair over time.
Exemptions and Exceptions
Not all jobs are covered by this Act. Some small industries or jobs where fewer than 1,000 workers are employed in the entire state may be exempt. Some jobs may have special pay or changes based on the kind of work being done.
Case Law
Crown Aluminium Works v. Their Workmen
This case stated that if wages are set at the minimum level, they cannot be lowered. However, if wages are above the minimum level, adjustments may be allowed if the employer can show a valid reason.
Workmen v. Reptakos Brett & Co. Ltd
The Supreme Court decided that financial issues faced by an employer are not a reason to lower minimum wages. The minimum wage is meant to cover basic living needs and cannot be reduced.
Manganese Ore India Ltd. v. Chandi Lal Saha
The court held that minimum wages must be paid in cash, and non-cash benefits cannot be counted unless the government specifies otherwise.
Greaves Cotton and Co. Ltd. v. Workmen
The court held that wages must be fair, ensuring they cover essential needs but also considering what the employer can afford.
The Workmen v. The Management of Reptakos Brett & Co. Ltd
This case reinforced the principle that minimum wages are non-negotiable, as they ensure basic living standards for workers. Employers cannot reduce these wages due to financial struggles.
People's Union for Democratic Rights v. Union of India
The Supreme Court held that paying below the minimum wage violates workers' fundamental rights. The government is obligated to ensure fair wages, and contractors or authorities involved are responsible for compliance.
Jalan Trading Co. (P.) Ltd. v. Mill Mazdoor Sabha
This case examined the constitutionality of the Minimum Wages Act. The Court decided that setting a minimum wage is lawful and necessary to protect workers from exploitation. The Act was upheld as valid and consistent with the goals of social justice outlined in the Indian Constitution.
Birla Institute of Technology v. State of Jharkhand and Others
The Supreme Court held that educational institutions are also required to comply with minimum wage laws for their employees. The judgment clarified that schools, colleges, and other educational bodies must pay their staff at least the minimum wage set by the government.
Payment of Bonus Act, 1965
Historical Background
The Payment of Bonus Act was introduced to ensure that workers receive a share in the company’s profits. This idea came from that employees contribute to a company's success and should benefit from its financial growth.
Present Position and Exemptions
The Act currently requires that companies with at least 20 employees pay a bonus to their workers if the company makes a profit. However, certain industries, like newly established companies, may be exempt from paying bonuses in their initial years.
Eligibility and Disqualifications
- Eligibility: Any employee earning up to a specific monthly wage (as defined by the government) and who has worked at least 30 days in a financial year is eligible for a bonus.
- Disqualifications: An employee may be disqualified if they are dismissed for misconduct, theft, or other serious offenses.
Bonus Formula
The bonus is calculated from the company's “available surplus,” which is the profit left after deducting certain expenses like taxes. The Act specifies a minimum bonus of 8.33% of wages and a maximum of 20%, based on profits.
Set-on and Set-off
Set-on and Set-off are provisions under the Payment of Bonus Act, 1965 that help companies manage bonus payments based on their profits. These provisions ensure that employees receive bonuses during profitable years, while allowing companies to balance payouts during less profitable times.
- Set-on:
- If a company’s allocable surplus (profit available for bonus distribution) exceeds the maximum bonus requirement (20% of wages), the extra amount is kept aside as a set-on.
- This set-on amount can be carried forward for up to four years.
- During years when profits are low, this surplus amount can be used to pay bonuses, ensuring employees receive a consistent bonus even in weaker financial years.
- Set-off:
- If a company has insufficient profits to pay even the minimum bonus (8.33% of wages) in a particular year, it records a set-off.
- This set-off amount represents the shortfall that the company couldn’t pay.
- In subsequent years, if the company earns enough profit, it must first clear the set-off (pay back the owed bonuses) before setting aside any new surplus.
- If a company has high profits in one year, it creates a set-on reserve. In a future year with low profits, it can use this set-on to pay the minimum bonus without impacting its financial health.
- Conversely, if there’s a low-profit year resulting in a set-off, future profits must address this shortfall before accumulating new set-on amounts.
- Set-on and Set-off help maintain a balance between fair bonus payments for employees and the financial stability of companies, especially in fluctuating profit scenarios.
- These provisions ensure that employees receive consistent bonus payments, while companies are not overburdened during financially challenging years.
Payment of Bonus (Amendment) Act, 2007 and Later Changes
Payment of Bonus (Amendment) Act, 2007 and Later Changes
This change increased the salary limit for qualifying, so more employees can get a bonus. Later changes adjusted salary limits and improved how bonuses are calculated to make sure they are fair.
KCP Employees Association v. KCP Ltd
KCP Employees Association v. KCP Ltd
The Supreme Court held that units with separate accounts can calculate bonuses independently, promoting fairness by linking bonuses to each unit’s financial performance.
Social Security and Employer's Liability
Employees’ Compensation Act, 1923
This Act provides compensation to employees who suffer injuries or accidents during their work. If a worker gets hurt or dies on the job, the employer must pay compensation based on the worker's injury and ability to earn afterward. This law is meant to ensure that employees or their families are financially supported after work-related accidents.
- 2017 Amendment: The amendment increased the compensation limits to keep up with inflation and provided better protection to workers by raising the minimum compensation amount in case of death or permanent disability. This change ensures fairer financial support for injured workers and their families.
Employees’ State Insurance (ESI) Act, 1948
The ESI Act introduced a social insurance system where both employees and employers contribute to a fund. This fund helps provide medical care, disability benefits, and maternity benefits to workers. If an employee covered under ESI gets injured, they receive medical treatment and financial help from the ESI Corporation instead of relying solely on the employer.
Employer’s Liability for Accidents
V. Jayaraj v. T.P. Transport Corp. Ltd.
The court held that if a worker is injured and suffers a partial disability (like losing part of their hearing), the employer must still pay compensation for the reduced ability to work, even if the employee continues working with the same wages. This judgment emphasized that continuing employment doesn’t reduce the employer’s duty to pay compensation based on the actual injury and its impact on the worker’s earning capacity.
Employees' State Insurance (ESI)
The Employees' State Insurance (ESI) is a social security and health insurance scheme for workers in India. It is designed to provide financial and medical support to employees and their families in case of sickness, injury, or other health-related issues that occur during employment. Key Points about ESI and its Benefits:
Purpose of ESI
- To offer medical care and financial assistance to workers who face health problems or accidents while on the job.
- To ensure that workers and their families are protected against financial hardships due to medical emergencies.
Who is Covered
- Employees earning a monthly wage up to a certain limit (set by the government) are eligible.
- It applies to factories and other establishments with 10 or more employees (in some states, it's 20 or more).
Contributions
- Employee's Contribution: A small percentage of their wages.
- Employer's Contribution: A higher percentage than the employee.
Benefits Provided
- Medical Benefit: Full medical care for the insured person and their family members, including doctor consultations, medicines, and hospitalization if needed.
- Sickness Benefit: Money given to help during approved sick days, up to a certain number of days each year.
- Maternity Benefit: Paid maternity leave for women employees, including pre- and post-natal care.
- Disablement Benefit:
- Temporary Disablement: Financial support if an employee cannot work due to injury or sickness.
- Permanent Disablement: Lifetime financial support if the employee is permanently disabled.
- Dependents' Benefit: In case of the employee's death due to an employment injury, their dependents receive regular financial support.
- Funeral Expenses: A lump-sum payment towards the funeral expenses of the deceased employee.
- Rehabilitation Allowance: Support for physical or vocational rehabilitation if needed.
How ESI Works
- Employees receive an ESI card, which they can use to access medical services at ESI hospitals and clinics.
- In case of illness or injury, employees can receive medical treatment without worrying about the costs.
- Financial benefits are provided directly to the employee or their family to help them during periods when they cannot earn wages.
Employer's Role
- Employers must register their eligible employees under the ESI scheme.
- They are responsible for deducting the employee's contribution from wages and adding their contribution before sending it to the ESI Corporation.
Importance of ESI
- It provides a safety net for workers, ensuring they are not left without support during tough times.
- Helps maintain a healthier workforce by promoting access to medical care.
Summary of ESI
The Employees' State Insurance scheme is like a protective umbrella for workers, offering them and their families medical care and financial help when they need it most, such as during sickness, maternity, or accidents at work.
Case Law
Transport Corp. of India v. ESI Corp.
This case clarified that companies, like transport corporations, must ensure ESI coverage for their employees. Even if employees work in different regions or roles, the ESI Act applies if the establishment is covered by the Act, securing employees' rights to medical and other benefits under the ESI scheme.
Saurashtra Salt Manufacturing Co. v. Bai Valu Raja
This case introduced the "notional extension" doctrine, which means that if a worker is injured while coming to or leaving the workplace within a reasonable area close to the job site, the employer can still be held liable. It protects workers by acknowledging that accidents can occur just outside the workspace and still be considered work-related.
General Manager, BEST Undertaking v. Agnes
This case extended the "notional extension" concept further. It held that an employer’s responsibility for an employee’s safety covers not only the workplace but also certain areas employees need to access when coming or going. The exact coverage area depends on the circumstances, ensuring fair protection based on individual cases.
Regional Director, ESI Corp. v. Ranga Rao & Ors
In this case, the court discussed the "causal connection" requirement, which means that for an injury to be covered by ESI, it must be connected to the employee’s work. This decision clarified that injuries must have a clear link to the employee’s job activities or work environment to qualify for ESI benefits.
Regional Director, ESI Corp. v. Batulbibi
This case involved a dispute over whether certain employees were covered under the ESI Act. The court held that workers should be included under ESI if they perform work related to the business, even if they are not regular or full-time employees. This decision reinforced that all workers contributing to a business’s operations should be eligible for ESI benefits.
Regional Director, ESI Corp. v. Francis De Costa
The court in this case emphasized that ESI benefits apply if there is a direct connection between the employee’s injury and their work. The ruling required a clear work-related link for an injury to be covered by ESI, making sure that only incidents tied to employment are eligible for benefits.
A Trehan v. Associated Electrical Agencies
This case addressed whether retired employees could claim ESI benefits. The court decided that ESI coverage does not extend to employees once they have retired, as the benefits are designed for active workers. This clarified that ESI protections apply only during active employment.
Royal Western India Turf Club Ltd. v. E.S.I. Corporation
This case confirmed that clubs and recreational places with employees must also follow ESI rules. The ruling made sure that all types of places, no matter what they do, must provide ESI coverage if they have enough employees, giving broad protection to all eligible workers.
Social Security and Retirement Benefits
The social security and retirement benefits in India include laws to support employees financially when they retire, ensuring a secure future. Key laws include the Employees' Provident Fund Act, Pension Scheme, and Payment of Gratuity Act.
Employees’ Provident Fund (EPF) Act, 1952
This Act provides a savings scheme for employees, where both the employee and employer contribute a percentage of the employee's salary each month. The amount collected, along with interest, is given to the employee upon retirement, helping them with a financial cushion. It applies to organizations with a certain number of employees and provides security in retirement, emergencies, or for the employee’s family after their death.
Pension Scheme (Under EPF)
The EPF Act also includes a pension scheme that provides a regular monthly pension to employees after retirement. This scheme ensures that retired employees receive continuous support even after they stop working. The pension amount is based on the employee's years of service and average salary, providing a steady income after retirement.
Payment of Gratuity Act, 1972
Gratuity is a lump-sum payment made by the employer to employees who have completed at least five years of continuous service. It is a way to thank employees for their long service. The amount is calculated based on the employee’s last drawn salary and years of service. If an employee retires, resigns, or passes away, they or their family receive this gratuity amount.
Provident Fund and Pension Scheme
Provident Fund (PF)
- The Employees' Provident Fund (EPF) is a savings scheme where both the employee and employer contribute a fixed percentage of the employee’s salary each month.
- These contributions are deposited into a provident fund account, which earns interest over time.
- When the employee retires or leaves the job, they can withdraw the accumulated amount, providing them with a large lump sum.
- The EPF amount is helpful not only at retirement but can also be used in emergencies, such as medical expenses or children's education.
Pension Scheme
- Alongside the provident fund, employees also contribute to a Pension Scheme under the Employees’ Provident Fund (EPF) Act.
- This scheme provides a monthly pension to employees after retirement, based on their years of service and salary.
- The goal is to give a steady income for life after retirement, which helps employees meet their day-to-day expenses.
- The pension amount increases with the number of years an employee has worked, ensuring long-serving employees receive more benefits.
Case Law
R C Gupta v. Regional Provident Fund Commissioner
This case allowed employees to contribute to their pension based on their full salary, even if it exceeded the regular wage limit, to help them secure a higher pension.
Employees Provident Fund Organization & Anr v. Sunil Kumar B.
The case granted employees who had missed the chance to opt for higher pension contributions initially the flexibility to choose it later, aiding in better retirement planning.
Together, the Provident Fund and Pension Scheme give employees a way to save during their working years and enjoy financial security in retirement, supporting them with both a lump sum and a monthly income after they retire.
Gratuity
Gratuity
Gratuity is a retirement benefit in India provided to employees as a lump-sum payment for their long-term service to a company. It’s a way for employers to show appreciation to employees who have worked with them for several years. Here’s how it works:
Eligibility
- An employee becomes eligible for gratuity if they have worked for at least five continuous years with the same employer.
- Gratuity can be received in case of retirement, resignation, or even if the employee passes away or becomes disabled (in these cases, the five-year rule doesn’t apply).
Calculation
The amount of gratuity is calculated based on the employee’s last drawn salary and years of service.
Payment of Gratuity Act, 1972
This law mandates gratuity payment for employees in companies with 10 or more employees. It ensures that employers provide financial support to employees after long service, particularly helpful in old age.
Benefits of Gratuity
- Gratuity helps employees financially during retirement or when they leave a job.
- It provides security and a reward for loyalty, especially for those who have dedicated years of service.
B.K. Kale v. State Road Transport Corp.
The court held on the importance of providing gratuity to employees, even if they are part of temporary or casual employment but have worked for a continuous period of time.
Maternity Benefit Act, 1961
Maternity Benefit Act, 1961
The Maternity Benefit Act, 1961 is a law in India that provides benefits to women employees during pregnancy and after childbirth. It aims to ensure that women can take time off from work to care for themselves and their newborn without losing their job or pay.
Key Provisions of the Act
- Paid Maternity Leave: Originally, the Act provided 12 weeks of paid maternity leave.
- Medical Bonus: Women receive a medical bonus if the employer does not provide free medical care.
Latest Amendment (2017)
- Extended Maternity Leave: The 2017 amendment increased maternity leave from 12 weeks to 26 weeks for women employees in both public and private sectors. This extension allows women more time for recovery and to care for their newborn.
- Leave for Adoptive and Commissioning Mothers: The amendment introduced 12 weeks of leave for mothers who adopt a child below three months of age or are commissioning mothers (those who have a child through surrogacy).
- Work-from-Home Option: After the 26 weeks of maternity leave, women have the option to work from home if their job allows it. This option is subject to the agreement between the employee and the employer.
- Mandatory Crèche Facilities: Employers with 50 or more employees are required to provide crèche (daycare) facilities. Women employees are allowed four visits to the crèche during the day, which includes the time for rest intervals.
Eligibility
A woman employee is eligible for maternity benefits if she has worked for the employer for at least 80 days in the 12 months before the expected delivery date.
Key Points of Maternity Benefits
- Maternity Leave: Women are entitled to paid leave for a certain period, allowing them time to recover from childbirth and care for their child. The Maternity Benefit Act, 1961, provides 26 weeks of paid leave for women in India, covering both public and private sector employees.
- Medical Care: The Act requires employers to provide a medical bonus if they don’t offer free medical care, helping cover medical expenses related to childbirth.
- Adoptive and Commissioning Mothers: The 2017 amendment extended 12 weeks of paid leave to women who adopt a child below three months old and to commissioning mothers (those having a child via surrogacy).
- Work-from-Home Option: Women can negotiate a work-from-home arrangement after their maternity leave ends, depending on the nature of their job, to continue caring for their child while working.
- Crèche Facilities: For employers with 50 or more employees, the law mandates crèche (daycare) facilities, allowing working mothers to visit the crèche four times a day.
Case Law
- Municipal Corporation of Delhi v. Female Workers (Muster Roll): The SC ensured that maternity benefits were extended to temporary or muster roll female workers, granting maternity support to all women workers, regardless of their employment status.
- Dr. Rachna Chaurasiya vs. State of U.P., 2017: The case emphasized the enforcement of maternity benefits, directing authorities to ensure these rights are upheld for eligible women employees.
Importance of Maternity Benefits
Maternity benefits provide crucial support for women during a sensitive time, helping them maintain their health and manage the early stages of motherhood without financial strain. These benefits encourage a supportive work environment and promote gender equality by acknowledging the needs of working mothers.
Legislative Protection to Vulnerable Sectors of Labour
Legislative protection to vulnerable sectors of labour in India aims to safeguard the rights and well-being of workers who are often at risk of exploitation due to their economic or social status. These laws focus on providing fair wages, safe working conditions, and access to basic benefits, helping workers who may not have the same power or resources as others.
Key Laws and Protections
- Minimum Wages Act, 1948: Ensures that workers receive a minimum wage, protecting them from being paid too little to meet their basic needs. It applies to various industries and sectors, especially those with low-income or unskilled workers.
- Contract Labour (Regulation and Abolition) Act, 1970: Protects contract workers who do not have a permanent job status, ensuring safe working conditions and, in some cases, the right to be regularized if work is continuous and long-term.
- Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996: Specifically protects construction workers by providing benefits like healthcare, accident cover, pensions, and housing, addressing the often unsafe conditions they face.
- Bonded Labour System (Abolition) Act: Prohibits bonded labour, freeing workers from exploitative debt bondage and providing rehabilitation.
- Child Labour (Prohibition and Regulation): Bans children under 14 from hazardous jobs and regulates conditions for children allowed in non-hazardous environments.
- Unorganized Workers' Social Security Act, 2008: Covers workers in the unorganized sector, providing social security benefits such as health insurance, maternity benefits, and pensions.
- Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979: Protects migrant workers by regulating employment, ensuring fair wages, housing, and travel allowances.
- Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013: Protects women from harassment at work, requiring organizations to have committees to address complaints and prevent harassment.
Importance of Legislative Protection
These laws collectively ensure that vulnerable workers have fair wages, safe working conditions, and access to essential benefits. By setting basic standards, the laws protect workers from exploitation, improve their quality of life, and promote social equality. Legislative protection is essential to support workers in vulnerable sectors, giving them the security and respect they deserve in the workforce.
Suppressed Sectors of Labour and Welfare/Social Security Measures
Unorganised Sector
- Overview: The unorganised sector includes workers who don’t have regular employment, such as domestic workers, street vendors, small farmers, and gig workers. These workers often face unstable income, lack of benefits, and no job security.
- Key Legislation: Unorganised Workers' Social Security Act, 2008
- Social Security Benefits: The Act provides a framework for social security schemes to benefit unorganised sector workers, covering areas like health insurance, maternity benefits, old-age pensions, and life/disability insurance.
- National Social Security Board: Established under this Act, the board is responsible for recommending schemes for unorganised workers and ensuring that they receive social security coverage.
- Welfare Schemes: The government offers specific schemes like the Rashtriya Swasthya Bima Yojana (RSBY), providing health insurance to unorganised workers, and the Atal Pension Yojana for a secure retirement.
Contract Labour
- Overview: Contract labour refers to workers hired through contractors rather than directly by the company where they work. These workers often lack stability, benefits, and fair wages, as they aren’t officially considered company employees.
- Key Legislation: Contract Labour (Regulation and Abolition) Act, 1970
- Wages and Working Conditions: The Act ensures that contract workers receive fair wages and have safe, hygienic working conditions. Contractors must also provide amenities such as drinking water, restrooms, and first-aid facilities.
- Abolition of Contract Labour: The Act allows the government to prohibit contract labour in certain roles, particularly if the work is ongoing and permanent. This can lead to the regularization of contract workers, making them eligible for better benefits.
- Payment and Benefits: The Act mandates that contract workers are paid on time and provided benefits similar to those given to permanent employees, helping protect them from exploitation.
Welfare and Social Security Measures
These laws and schemes aim to bring security, fairness, and dignity to workers in the unorganised and contract labour sectors. While they may not have the same benefits as regular employees, these legislations work to bridge that gap by offering essential protections and a minimum standard of welfare. These protections ensure that:
- Unorganised workers receive basic social security through government schemes.
- Contract workers gain fair wages, safe working environments, and, when possible, a pathway to more stable employment.
Unorganised Workers and Contract Workers
Unorganised Workers
- Who They Are: Unorganised workers include people who work without formal job security or benefits. Examples include domestic workers, street vendors, small farmers, construction workers, and gig workers.
- Challenges: These workers often face low wages, irregular work, no health benefits, lack of job security, and are highly vulnerable to exploitation.
- Protection through Legislation:
- Unorganised Workers’ Social Security Act, 2008: This Act aims to provide social security to unorganised workers, covering health insurance, maternity benefits, life and disability insurance, and pensions.
- Government Welfare Schemes: The government has launched specific schemes under this Act, such as the Atal Pension Yojana for retirement security, Pradhan Mantri Suraksha Bima Yojana for accident insurance, and Rashtriya Swasthya Bima Yojana (RSBY) for health insurance. These schemes give unorganised workers a safety net for their health and financial needs.
Contract Workers
- Who They Are: Contract workers are hired through third-party contractors instead of being employed directly by the company where they work. They are often engaged for specific projects or temporary roles.
- Challenges: Contract workers usually lack stability, receive fewer benefits, have less protection against unfair treatment, and are often paid lower wages than permanent employees.
- Protection through Legislation:
- Contract Labour (Regulation and Abolition) Act, 1970: This Act regulates contract employment to protect contract workers from exploitation.
- Wages and Working Conditions: The Act requires contractors to provide fair wages and basic facilities, such as drinking water, toilets, and first-aid.
- Abolition of Contract Labour: In some situations, the Act allows the government to ban contract labour in permanent roles, which can lead to the regularization of contract workers in those positions.
- Timely Payment: Contractors must pay wages on time, and principal employers (the company hiring the contractor) are held accountable if payments are delayed.
- Contract Labour (Regulation and Abolition) Act, 1970: This Act regulates contract employment to protect contract workers from exploitation.
Why These Protections Matter
- Unorganised Workers: The social security measures help unorganised workers feel safer about their health and future, especially since they often lack formal job protections.
- Contract Workers: By ensuring fair wages and working conditions, the law reduces the risks of unfair treatment, aiming to provide contract workers with a fairer work environment.
Case Law: Workers' Rights and Protections
Air India Corporation v. United Labour Union
The Supreme Court held that if contract workers perform regular duties for a long time, they can be given the same protections and benefits as permanent staff, ensuring fair treatment and job security.
Steel Authority of India Ltd. v. National Waterfront Workers
The Supreme Court held that the decision to make contract workers permanent must be made by the government, not the courts. This restricted the automatic conversion of contract workers to permanent roles.
Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 was established to protect the rights of migrant workers who move from one state to another for work. This Act focuses on ensuring fair wages, decent working conditions, and basic amenities for these workers. However, various issues and challenges remain, particularly evident in projects like the Social Mapping of Migrant Workers Project in Odisha.
Key Issues and Challenges Faced by Migrant Workers
- Lack of Awareness and Documentation: Many migrant workers are unaware of their rights under the Act, which limits their ability to seek fair treatment. Additionally, many lack proper identification or documentation, which is essential for availing social security benefits and protections.
- Poor Working and Living Conditions: Migrant workers often live in temporary, inadequate housing with poor sanitation and limited access to clean water. The Act mandates that employers provide basic amenities, but in practice, these standards are frequently ignored.
- Irregular Wages and Exploitation: Migrant workers are vulnerable to wage delays, underpayment, and exploitation. The Act requires contractors and employers to pay fair wages, but due to weak enforcement, many workers face wage-related issues.
- Health and Safety Risks: Migrant workers face health risks due to unsafe working conditions, lack of healthcare access, and insufficient protective gear, especially in industries like construction and agriculture.
- Lack of Social Security and Welfare Benefits: Although the Act aims to provide social security, in practice, access to welfare benefits such as insurance, pension, and healthcare is limited.
- Challenges in Monitoring and Enforcement: Enforcement of the Act is challenging due to limited government resources, inadequate monitoring, and the transient nature of migrant work. Contractors often bypass regulations, and many migrant workers are employed informally, making it harder to monitor their conditions.
Case Studies from the Odisha Social Mapping of Migrant Workers Project
The Social Mapping of Migrant Workers Project in Odisha highlighted specific cases where migrant workers faced exploitation and challenges despite the existence of the 1979 Act. For example:
- Some workers reported being misled about the nature of the work and wages before migration, leading to job dissatisfaction and financial strain.
- There were cases where workers migrated for seasonal work but lacked the resources to return home in emergencies due to withheld wages or delays.
Conclusion
While the Inter-State Migrant Workmen Act of 1979 provides a framework for protecting migrant workers' rights, the actual implementation remains a challenge. Projects like the Social Mapping of Migrant Workers in Odisha emphasize the need for stronger enforcement, better awareness, and support systems to address the practical difficulties migrant workers face. Enhanced monitoring, coupled with state intervention, is essential to ensure these workers have access to safe working conditions, fair wages, and essential welfare benefits.
New Labour Codes
The new Labour Codes in India aim to streamline and update existing labour laws by combining 29 central laws into four comprehensive codes. These codes are designed to improve compliance, reduce complexity, and ensure that workers across various sectors receive fair treatment and essential protections. Here’s a breakdown of each code and the changes they introduce:
Code on Wages, 2019
- Purpose: To consolidate laws related to wages, including the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act.
- Key Changes:
- Establishes a national minimum wage, which can be adjusted by states based on local needs.
- Ensures timely payment of wages to all employees, including contract workers, and reduces the scope of wage discrimination based on gender.
- Mandates equal pay for equal work across genders and introduces stricter penalties for wage-related violations.
Industrial Relations Code, 2020
- Purpose: To regulate employment terms, dispute resolution, and relations between employers and employees, consolidating the Trade Unions Act, Industrial Employment (Standing Orders) Act, and Industrial Disputes Act.
- Key Changes:
- Introduces a formal dispute resolution system and simplifies the process for resolving industrial disputes.
- Allows firms with up to 300 employees to lay off or retrench workers without government approval (previously limited to 100 employees).
- Introduces a framework for recognizing trade unions and gives them a legal standing to negotiate and represent workers.
- Encourages fixed-term employment, providing contract workers with similar benefits to permanent employees, including gratuity, based on contract duration.
Occupational Safety, Health and Working Conditions Code, 2020
- Purpose: To ensure safer working environments and regulate work conditions, replacing 13 laws, including the Factories Act, Mines Act, and Contract Labour (Regulation and Abolition) Act.
- Key Changes:
- Sets clear health and safety standards for workplaces, especially those in hazardous industries.
- Mandates annual health check-ups and welfare provisions like clean drinking water, ventilation, and sanitary facilities.
- Provides protection to gig and platform workers, giving them access to social security and health benefits.
- Sets work hours, overtime rules, and safety measures, focusing on improving work conditions for women, contract workers, and migrant labour.
Social Security Code, 2020
- Purpose: To unify social security provisions, bringing together laws like the Employees’ Provident Fund Act, Employees’ State Insurance Act, and Maternity Benefit Act.
- Key Changes:
- Extends social security benefits (like provident fund, ESI, and maternity leave) to gig and platform workers.
- Requires employers and aggregators (for gig workers) to contribute towards social security funds.
- Introduces a universal social security system where even informal and unorganized sector workers can access benefits.
- Mandates gratuity benefits for fixed-term employees, helping contract workers receive financial security for shorter job durations.
Benefits and Goals of the New Labour Codes
- Simplification and Flexibility: The new codes aim to reduce the number of overlapping laws, making compliance easier for employers and the government.
- Enhanced Worker Protections: By extending social security, health, and safety benefits to a broader range of workers (including gig, platform, and informal workers), the codes ensure fair treatment.
- Job Creation and Economic Growth: With simplified regulations, companies may find it easier to hire more employees, potentially boosting employment.
- Improved Employer-Employee Relations: By clarifying industrial relations and dispute resolution processes, the codes seek to create a harmonious work environment.
Detailed Breakdown of Selected Codes
Code on Wages, 2019
- Purpose: The Code on Wages aims to consolidate and simplify existing wage-related laws. It combines four previous laws: the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act.
- Key Provisions:
- National Minimum Wage: Introduces a universal minimum wage applicable across the country. States can set their own minimum wages, but they cannot be lower than the national minimum.
- Uniform Definitions: Establishes standard definitions for terms like wages, helping reduce confusion across different sectors and ensuring consistency.
- Payment Timeliness: Mandates timely wage payment for all types of employees, including contract and unorganized sector workers.
- Equal Remuneration: Ensures equal pay for equal work across genders, addressing wage disparities and discrimination.
- Bonus: Defines eligibility criteria for bonuses and sets minimum and maximum bonus limits. Employers are required to distribute a share of profits to employees based on company performance.
Code on Social Security, 2020
- Purpose: The Social Security Code integrates various social security laws, including the Employees’ Provident Fund Act, Employees’ State Insurance Act, Maternity Benefit Act, and others, to establish a comprehensive social security system.
- Key Provisions:
- Universal Social Security: Extends social security benefits to unorganized, gig, and platform workers, creating a more inclusive system. This ensures that all workers, including those in informal sectors, have access to essential benefits.
- National Social Security Board: The code establishes a board to formulate policies and schemes for unorganized workers, including health insurance, life and disability coverage, and maternity benefits.
- Social Security Contributions: Employers are required to contribute to social security funds for employees, and aggregators (e.g., companies that rely on gig workers) are expected to contribute for gig and platform workers.
- Gratuity for Fixed-Term Employment: Fixed-term workers are now eligible for gratuity benefits based on their contract duration, providing financial support similar to that given to permanent employees.
- Welfare Schemes: The code promotes pension, health insurance, maternity leave, and other benefits for all sectors, including low-wage and temporary workers.
Occupational Safety, Health, and Working Conditions (OSHWC) Code, 2020
- Purpose: This code consolidates 13 existing laws, including the Factories Act, Mines Act, and Contract Labour Act, to ensure uniform standards for occupational safety, health, and working conditions across various industries.
- Key Provisions:
- Health and Safety Standards: Sets basic standards for workplace safety and health, including measures like annual health check-ups, clean drinking water, and proper ventilation. These standards apply to all establishments with 10 or more workers.
- Work Hours and Overtime: Defines work hours, overtime pay, and conditions for night shifts, providing a clear structure for managing work schedules.
- Welfare Facilities: Employers are required to provide welfare amenities, such as canteens, restrooms, and medical facilities, especially in industries like manufacturing, construction, and mining.
- Safety for Women Workers: The code allows women to work night shifts under certain safety conditions, promoting gender equality while ensuring their safety.
- Protections for Gig and Platform Workers: The code also includes safety provisions for gig and platform workers, recognizing their need for safe working conditions despite their non-traditional employment status.
Overall Significance of the New Labour Codes
- Simplified Compliance: The new codes reduce complexity by consolidating multiple laws, making it easier for employers to comply with regulations.
- Inclusive Protections: They extend protections to informal, contract, gig, and platform workers, covering a wider range of the workforce.
- Balanced Flexibility and Security: The codes offer flexibility to employers while safeguarding employees' rights, especially in terms of fair wages, safety, and social security.
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